If you’re hoping to close a round of funding You must be able to prove that you have all the pieces of your business. This involves sharing documents that evaluate your company’s performance and strengths. A digital investor dataroom is among the most efficient tools to accomplish this. It allows for the safe and secure transfer of sensitive information as part of the due diligence process.
What documents should you include for investors in the dataroom? And how do you know whether you’re providing too much or too little? We spoke to Andrea Funsten, a partner at Basecamp Fund, to find out.
The answer «It depends». Although every business is unique however, there are a few things founders must consider before creating an online data room for investors.
Generally, you should attach the following documents:
1. Pitch Deck: This should include a high-level summary of the company’s mission statement, product vision, competitive landscape, and traction. It should also include a draft of the investor’s pitch and a rough timeline of the capital raising process.
2. Financial Information: Included in this section are both projected and historical financial statements, as well as the sources to support these projections. It is also important to include information about the legal structure of your business including bylaws, articles, business certificates, and tax information.
Some founders choose to include other documents like executive summaries and internal reviews of the company’s performance. It is important to be aware that adding additional documents could consume time and may slow down the due-diligence process.